High Court Karnataka High Court

The Commissioner Of Income Tax vs M/S Mangalore Tiles Ltd on 11 August, 2008

Karnataka High Court
The Commissioner Of Income Tax vs M/S Mangalore Tiles Ltd on 11 August, 2008
Author: K.L.Manjunath & A.S.Pachhapure
i

xx TEE HIGH coax? or Kamnamnxa Am Haneaxafisfg".

gamma wars wan 11"'DA$ 09 AUGUST, éfics  "'
PREsENw ="*-- _ ' ;u u xx
ms now 51.2: mi. JUSTICE  
THE HON'BLE MR.' Ju's1*;;§::iER:A'2§_.;*%_V,L Pficfiaaguxéfl
BETWEEN: _ A,Hig». V: 'V

1.

The Cammiabiénér éf In¢q$e¢féi;”‘

C.R.Bu1;¢ing{gA¢tavfa,’5’=
M=a119=vIlo:£-av» =

2 . The {3é15u’tyVif,Coazi§Li’::si:;;iex cf
IncdmeeTax'{Aa$tq};_”z *-

Special’ Range ‘, .’ , F. 1.33″-uAT.,1.–ding ,
Attav:a,,Mangal¢re}g .. APPELLANTS

(By»advo&a:¢”Sri@M.V.Seshachala}

V°ws Ma@gaiaée_i11es Ltd.,

UdQiVBi$t~§?6 201. .. RESPOfiDENT

(By. Jidvocate Sri . S. P . Bhat)

I.T..A. is filed under Sac.260B. of The

‘E:;c;¢ma Tax Act: to allow the appeal and set aside

the’ orders passed by the Income Tax Appellate

yV”V’A».£L’z.*:i.buz:al, Bangalore in XTA 160.335/Bang/’2000 dated

2

l9.12.2fJ£33 ccnjfinning the order of the
Cmtmissicmer and confimuad the order _._the

Joint; Comzniasionex of Incozrae Tax {Asaut:’;)

Range , Mangalore .

This Appeal is cc>m1.Tng:.Jonb”‘f::l: ‘. ‘

this day, Mmnavnnsn J. delivered tha £n11qwinga_”c

-3 U 1:>._9,.;y§~;_§i«_%11w$ . A

This appeal 1.3 tkfi, cha.il;énq1ng the
ccncxuxxent fmnciings of Im::.ome-
Tax (Appeala; tgge by the Ine:c:sme–
Tax Appéii@t§” ifri5@fia;;. Eanga1ore, in IIA

go.aasiééhgzéqaofigggggfzy.iéiéooa.

2. Emé =:Eé.c:t.s ‘«:.’af”‘ are as hereunder:

;’1’i’.va assesééé 1.3 a. znanufacturezr of tiles and

a’r.1f.d;g:a5 the assessee is having few lorries.

depreciation at the rate cf 40% on

thé.__ owned by it on the grounci that the

‘,.fI.o1:3:ie”3 1:a.re eaxning incomne since the aasessee is

than: can ‘hire ha.-5.1.5 far the purpcme of

tfianspcrtation. The assessing officer having

fv’

zioticeci that than lorries in question are

5
Comnissioner of Income-‘fax (Appeals) as woii
Income Tax Appellate Tribunal
depreciation at the rate of:-I “a’m–3_ it
submits that whethex: there wot;
from transport business Visit
a question of fact fand a.fi’1tho;tiVtiiea have
ooxzcurrently held V * the assesses;
tharefoxe he ::u}’.vnexnit:.’§~ ‘intention

of law

6. 8a:::ingf’hoai3é:ii:§£.V.th§aV–._oounse3f for the parties and

on peifisal’ it is noticed by us that

\»’

before tiheét ‘officer assessoe did not

prodxioé ma’.te.x-.1′..a..3.s to show what was total.

.:eoéived by the assessee from transport

ibxxeiinoiiesafi :”E1oxmL:.asioner of Income-EI.’a.x (Appeals)

witizoutv’ the same, aoleiy relying upon the

agmual-V__:r:aintena;:ce of lorries and the receipt

1fxi3?_§b–‘ Chaxgea has come to the conclusion that the

V aéseaaee is engaged in transportation business. We

have coxwareci total receipts fzcom the transport

I9»

‘?

business and the loxry maintenance charges in every
asseasnaent year. The maintanance charges woikld be

nearly double than the receipt of hixgg

from this it is not possible for any

that whether: the lorries were>~ma.;gn.1.T_j; that

businasss of assessee and 3.1: I

its business and that th_é’=.__a.s.sassee. fl_g*at:t3Lng

xexgpslar income by sending u’is::>’r.*:.ji.es bite basis.
In the absence prv”_:>pe;r.l. “~-zmtzéztzial, man the
Coxxmzassionex cf and the

“15:-.=.¥§.~,_ finding stating that the
.1.o:r:r:£.esx7wez.*eV by the asseasee and that

tha a_ssesa’ee” éxztitled for deduction at 40%,

Elie .acce;Ste–:%—-«by us and such a findang has to

115 as pexverse since the same is

wifixcfiiit V a:”iY– basis .

considering the order passed by the

“‘¢c;:sx:_:’::$.’;f.@a;5:Lonc.-2..=: of Income—$’a.x (Appeals) and the

t3f.%.bunaJ., we are of the opimmn that their findings

axe arrazneoua and perverse and not based on proper

material available on record. In the
circumstances, we have to set aside the fin-tiings of

the Cc:«nm:i.s.s1:;.mer of Inccxme-iI’ax (Appeals}…..§aj:a.’:”w§é=;§;3,i ._a;a

the tribunal and remand the matter to tfia atS#sain§t

affine: for fa.-ash conaidexatamnm-s1n};:e _. .t_1A1’e-‘._a,s;s-3ezs:iA.ngi’.

officex has mac not consici:é~.;é§i_T
to be considered by but O£C9%F théi
depreciaticm allow.’-able. attsefigegii at 40%.
Since there are my given by the
asseessee before us, ..=m.§ that the
matter has assessing officer
to enablei. ptfipduce relevant recoxas
lmrry :”:L_g : for ibusiness and that there was

sub.-stant;i.’a;3.V * j.11;:om_e’~~– from such transportaizxon

._ busifiesfi anfi éfitltlad for éepreaiatlon at 40%.

,.f?:; V”t~r:é=5ult, this appeal is allawed without

azmyféxing ‘ ” question of law fraxned 1:1; 6,1;

‘x_;yrmnano1’iv.1ig the matter to the assessing officer for

f}_’.’fi.”zr.V’e:}s5′.i2. consideration as stated supra.

9

sal-

Iudge

Sd/-

31130808 Judge